Eskom progresses battery energy storage project

Following a competitive and transparent bidding process, Eskom has awarded contracts to two successful bidders for the provision of battery storage solutions in terms of its flagship Battery Energy Storage System (BESS) project. The appointed service providers are Hyosung Heavy Industries, headquartered in Seoul in South Korea, and Pinggao Group, based in China. The contract is for design, supply and installation as well as operating and maintenance for a five-year period. This is the first part of the 500 MW BESS initiative announced by President Cyril Ramaphosa as part of government’s measures to address South Africa’s long-running electricity crisis.

Eskom has awarded contracts to two successful bidders for its flagship Battery Energy Storage System project.

The Eskom BESS project will serve as proof of concept on the delivery of Eskom’s first battery energy storage project in South Africa. The project supports transformation in the energy sector, demonstrating large-scale deployment in support of South Africa’s renewable energy strategy, and addresses local overall system challenges.

It is envisaged that gains from the BESS project will help to alleviate the pressure on the national electricity grid. The project will be used primarily for national peak shaving (managing demand) purposes for four hours a day for at least 250 days of the year. It will also be used secondarily for ancillary services and local network support. There are, in addition, several technical applications and benefits that will be quantifiable over time. Charging of the batteries will take place during off-peak periods or when network conditions permit.

The project is designed to use large-scale utility batteries with the capacity of 1 440 MWh per day and a 60 MW solar photovoltaic (PV) capacity and is to be implemented in two phases.

Phase 1 includes the installation of about 199 MW additional capacity. With four hours of storage, this equates to 833 MWh of distributed battery storage plants at eight Eskom Distribution substation sites. This phase also includes about 2 MW of solar PV capacity.

Phase 2 includes the installation of a total of 144 MW which is equivalent to 616 MWh at four Eskom Distribution sites and one Transmission site. The solar PV capacity in this phase will be 58 MW.

To maximise benefits, the distributed battery storage sites are strategically situated in remote areas with limited access to Eskom’s distribution networks, but close to renewable independent power producers’ (IPPs) plants.

All Phase 1 sites are planned to be commissioned by 30 June 2023 and Phase 2 by December 2024.

“Through the BESS project, Eskom aspires to diversify the existing energy generation mix, pursuing a low carbon future to reduce the impact on the environment. The 1 440 MWh distributed BESS with 60 MW solar PV represents a significant leap forward in achieving this aspiration,” said Velaphi Ntuli, Eskom’s General Manager Coal & Clean Technology. “It will be one of the largest BESS projects to be developed and implemented in South Africa.”

Approval for the BESS implementation has been obtained from the World Bank. The project is co-financed by the African Development Bank, New Development Bank, the World Bank and the Clean Technology Fund (CTF).

The electricity grid will continue to incorporate energy from renewable sources, and this will require energy storage in large quantities. In this regard, Eskom operates the largest testing facility for large-scale energy storage in the southern hemisphere at its Research, Testing and Development (RT&D) facilities in Rosherville, Gauteng. It continues to explore bulk energy storage solutions for grid strengthening as well as small-scale, behind-the-meter storage solutions for customers to store their own generated power.

Eskom’s Group Chief Executive, André de Ruyter, said, “The project demonstrates one of many ways in which Eskom can partner with various players in finding alternative, innovative and lasting solutions. It is also consistent with Eskom’s Just Energy Transition (JET) strategy, and storage is one of the key initiatives to assist in addressing the country’s electricity challenges in the long term.” The Eskom BESS project incorporates transformational aspects in demonstrating large-scale deployment of storage capacity in support of South Africa’s Integrated Resource Plan.

Eskom views the development of local industry as a critical part of South Africa’s socio-economic and transformation developmental agenda and has identified the BESS project as an opportunity to advance these imperatives. Accordingly, a preliminary localisation and industrialisation study has been conducted on the BESS and Eskom will continue to engage stakeholders actively to ensure that maximum benefits are derived from all the project sites. 

Sites for Phase 1

Sites for Phase 2

For more information visit: www.eskom.co.za